What's with Bernanke jawboning the stock market upwards?

[jk]

Re: What's with Bernanke jawboning the stock market upwards?

re "the finance economy"

it's the financial system of easy credit, abs and mbs recycling by gse's that has let people cash out their housing "equity" in order to consume 7% more than they produce.

[Finster]

Re: What's with Bernanke jawboning the stock market upwards?

re "the finance economy"

it's the financial system of easy credit, abs and mbs recycling by gse's that has let people cash out their housing "equity" in order to consume 7% more than they produce.

No argument there, JK. Despite its advertised intention, the extreme fiscal and monetary stimulus applied in recent years has weakened the US economy. Anytime you artificially facilitate production-free consumption, you inevitably encourage relatively more consumption and less production.

The lamenting of our rock-bottom savings rates and unsustainable deficits by our political leadership is so ironic given that it is their own policies that have encouraged this state of affairs!

[jk]

Re: What's with Bernanke jawboning the stock market upwards?

The lamenting of our rock-bottom savings rates and unsustainable deficits by our political leadership is so ironic given that it is their own policies that have encouraged this state of affairs!

unfortunately, i think most of them are stupid enough that they don't realize what a disaster they are wishing for. it's like shumer and his anti-china attacks. you can't even say "be careful what you wish for" because they don't get it. or perhaps they don't even care to think that hard, but just go for the shallow political point.

[Finster]

Re: What's with Bernanke jawboning the stock market upwards?

unfortunately, i think most of them are stupid enough that they don't realize what a disaster they are wishing for...

I go back and forth between thinking they are just stupid and overtly malevolent. Maybe some of both. My guess is they learn about economics and public policy from their big money backers, whether they be corporate managements, unions, Holywood, victim-of-the-month shills or whatever. And from all appearances, both of the major parties are the same in this respect, just different emphases and styles, and not even that different there.